The Phase 2 Grenfell Report makes difficult reading for not just the construction market but in particular, architects and those carrying out architectural services. Not only was the report clear in its condemnation of the architect “Studio E”, but it also went further, highlighting issues within the profession, noting Studio E’s negligence as symptomatic of “widespread failure” across architectural firms.
It is evident that the report is not highlighting the capability of Studio E in creating architectural drawings or reports, nor does it claim that there are deficiencies in the actual services that the architectural industry provides. It instead brings to light the concerns that lay on the periphery of the industry, the work that is often taken lightly but is always just as important, project administration, training and risk management.
The Inquiry Panel flagged that Studio E demonstrated a “cavalier” attitude to the regulations surrounding fire safety and had no familiarity or understanding of the Building Regulations. Similarly, under pressure from the TMO and due to cost implications, Studio E changed their external wall material recommendations, replacing the far more appropriate zinc rainscreen panels with the cheaper but “dangerous” ACM panelling. Similarly Studio E failed to recognise that the insulation (Celeotex) was combustible and completely inappropriate for use on buildings over 18 metres.
However, amongst the more telling aspects for the architectural profession, the report highlights the consequences of internal processes for contracts that are not fit for purpose or where proper consideration isn’t given to an architectural firm’s own contract administration. Studio E unwittingly signed up to supervision obligations, failing to understand that “it was responsible for design work carried out by the sub-contractors”. It did not check that the final version of the fire safety strategy was produced (which it had not been) and it did not check that the sub-contractors’ work was compliant with the Building Regulations. Whilst these are certainly oversights, contributing to the disaster of Grenfell; they were in essence, simply clerical or administrative errors. This shows how such mistakes can lead to significant consequences.
This report has pulled on a common thread which architects should always be aware of, the Inquiry commenting that “We are not the first to conclude that the construction industry as a whole needs to become technically more competent and less willing to sacrifice quality to speed and cost.”
Thouria Istephan, an Inquiry Panel member made the telling comment: “Put simply, if you work in the construction industry and you do not feel the weight of responsibility you have for keeping people safe, you are in the wrong job.”
Ensuring that thorough continual professional development and training for individuals within a firm so that all are aware of the latest techniques, materials, and methods as well as the perils of dangerous practices and poor contract administration, is a significant task in itself, particularly for smaller practices. The ARB and RIBA have taken steps to “improve education and the training of architects”, there are also resources away from the governing bodies that can be considered, particularly from the insurance industry and legal sector, with many firms putting on presentations or providing written articles on topical issues.
Professional indemnity insurance has experienced a softening of conditions in 2024, with premiums coming down and policy coverage broadening in respect of fire safety and cladding claims. Whilst there are no immediate signs of that changing, underwriters and capacity providers are keeping a close eye on the ramifications of this report. Particular focus will be on whether there is an emergence of claim notification spikes in light of the report findings. Keeping in touch with your insurance broker, referring to them any concerns and listening out for any advisory points, is particularly prudent in these times.
Brunel PI Brokers can provide assistance and technical support with your risk management, continuing professional development and contract administration concerns. We have bespoke CPD sessions on the Building Safety Act with a slant on the insurance implications of the new legislation.
If you have any questions regarding this Grenfell: Phase 2 report or would like to discuss your own risk management queries in greater detail, please contact harryb@brunelpi-brokers.co.uk.
